Methanol is a cost-effective carrier for renewable hydrogen and serves as a substitute for gasoline, diesel and liquefied petroleum gas in transportation. It is also used to produce chemical intermediaries and materials. The global renewable methanol market is driven by its ability to lower greenhouse gas emissions and decarbonize various industries.
The Global renewable methanol market is estimated to be valued at US$ 229.13 Mn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the renewable methanol market are Methanex Corporation, Carbon Recycling International, BioMCN, Enerkem, Chemrec Inc., and Varmlands Methanol. Methanex Corporation is one of the largest producers of methanol in North America.
The rising demand for renewable fuels and chemicals from end-use industries along with strict environmental regulations present significant growth opportunities for players in the renewable methanol market. Governments across regions are introducing favorable policies and incentives to encourage the production of renewable fuels using waste and biomass.
Technological advancements such as the development of more efficient processes to produce renewable methanol from various feedstocks at lower costs are expanding the commercialization and adoption of renewable methanol. Researchers are also working on developing methanol fuel cells for use in transportation to reduce emissions further.
Market Drivers
Growing environmental concern toward fossil fuel emissions is a key factor driving the Renewable Methanol Market Size . Methanol produced from renewables helps reduce dependence on depleting petroleum reserves and lower greenhouse gas emissions considerably as compared to gasoline and diesel. According to studies, renewable methanol can reduce lifecycle greenhouse gas emissions by up to 95% compared to gasoline. Strict regulatory mandates to reduce carbon footprint are also propelling the replacement of conventional fuels with renewable alternatives like renewable methanol in various regions.
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